Numerous processes for the conversion of organic material such as sawdust, sludge, rubbish, agricultural products, and the like, to liquid organic material are known as disclosed, for example, in U.S. Pat. Nos. 3,562,115; 3,298,928; 3,733,255; 3,362,887; 3,929,585; 3,970,524; and 3,702,039. However, none of the prior art methods are capable of producing high quality fuel with such low cost equipment in an environmentally acceptable manner as with the method and apparatus of the present invention.